Equites Stable After JPMorgan and Wells Fargo Earnings – Europe Market Wrap

US equity futures steadied on Friday following a Wall Street selloff led by technology.

In premarket trade, Apple and Microsoft saw gains, while Nasdaq 100 contracts recovered from an early dip that mirrored the index’s 2.2% drop on Thursday. Following the announcement that it will push out the launch of its robotaxi by around two months, Tesla shares fell.

Investors have been moving away from tech megacaps and towards cheaper cyclical companies, such as banks.

The Federal Reserve is expected to be able to lower interest rates soon, with a September rate cut now completely priced in and at least two by year’s end, based on Thursday’s inflation statistics.

The technology sector was the only one in the red on the Stoxx Europe 600 index for a third day, with chip makers like ASML and ASM trailing their US counterparts lower. The majority of gains were in telecom companies, with Ericsson rising more than 6% on the release of results that exceeded analysts’ projections.

Swedish CPI YoY Actual 2.6% (Forecast 2.9%, Previous 3.7%) [Swedish Krone weakened]

BoJ accounts point to intervention of around 3.5 trln yen. BoJ accounts suggest Japan intervened in FX market overnight.